Sustained Innovation and Creativity - Toyota Industries Corporation

Medium-Term Management PlanToyota Industries formulated a new Medium-Term Management Plan and is undertaking strategicmanagement from a mid-term perspective to ensure future business growth and achieve a stable increasein corporate value.Previous Medium-Term Management Plan (Fiscal 2002 - Fiscal 2006)Targets Achieved through Proactive Growth StrategiesSpecifi cally, we took steps to further sharpen theUnder the recently completed fi ve-year Medium-Termcompetitiveness of the Materials Handling EquipmentManagement Plan, which we launched in fi scal 2002, we set and Automobile segments, our core businesses, while alsothe ambitious targets of consolidated net sales of more than promoting initiatives to build a solid foundation for our¥1,200 billion and consolidated ordinary income of ¥80.0Logistics Solutions and Electronics businesses. Thanks tobillion by fi scal 2006, the fi nal year of the plan. In working to these measures, we exceeded our targets by recordingattain these targets, Toyota Industries proactively carried out consolidated net sales of ¥1,506.0 billion and consolidateda wide range of activities.ordinary income of ¥80.6 billion in fi scal 2006.New Medium-Term Management Plan Launched (Fiscal 2007 - Fiscal 2011)Aiming for Sustainable GrowthIn fi scal 2007, ending March 2007, Toyota Industries launcheda new fi ve-year Medium-Term Management Plan (April 2006–March 2011). We have set the targets of achieving more than¥2,000 billion in consolidated net sales and ¥140.0 billion inconsolidated ordinary income in fi scal 2011, the fi nal year ofthe plan.Through our business, we are striving to generate ¥1,000billion in sales in the Automobile Segment, which engages invehicles, engines, car air-conditioning compressors and carelectronics. Concurrently, we will aim for ¥1,000 billion in salesin the Materials Handling Equipment Segment,consistingVision 2010—Uniting Our Group StrengthsGrowthInnovationDiffusion ofGoodPracticesUndisputed No. 1Make further inroads intoAutomobile, MaterialsHandling Equipment andLogistics businessesAdvanced Technology Value Chain•Pursuit of global best quality •Strategic M&A and alliances to•Reduce environmental burden create valuevia product development and •Synergies between business unitsinnovative manufacturing •Higher value-added sales and•Contribute to car innovation servicesEnhance Team Strength and Spirit•Leadership•Unique skills, unique techniques•Toyota Production System•Spirit of harmony (Teamwork)Growth Trajectory140.0ConsolidatedOrdinary Income (¥ Billion)70.980.685.0Over2,000.0Electronics59.051.4ConsolidatedNet Sales (¥ Billion)1,164.41,069.21,241.51,506.01,670.0LogisticsMaterials Handling EquipmentCar Air-Conditioning Compressor¥1,000 billion inMaterials Handling/Logistics businessesCar Electronics¥1,000 billion inautomobile-relatedbusinessesVehicle/EngineTextile Machinery, etc.FY03 04 05 06 07(Projection). . .11(Target)44 Toyota Industries Corporation Annual Report 2006